Short-term letting in Dublin has become the most sought-after business for the homeowners in the private housing market. However, this short-term and highly profitable market is threatening the existence of a long-term rental market.
Dublin’s long-term rental market is provoking many government officials to propose and legislate the short-term lets. As a result, many proposals and recommendations are on the table which remain to be granted.
However, these proposals won’t make the holiday rentals less attractive, but more restrictive in nature. Still, there’s a great opportunity for the newbies to explore the options and opportunities available to them under the Dublin regulations for short-term rentals.
Although the regulations in Dublin are applicable, there are no defined penalties and fines for violating the regulations. One thing important to notice is that the new regulations will be applicable to only Rent Pressed Zones (RPZ).
In this blog, we are going to discuss the short-term rental regulations in Dublin and they are being amended for which regions in Ireland. Moreover, we’ll give you tips on growing your business with the help of Houst. So, let’s start exploring these regulations and pro tips!
Table of Contents
Short-Term Rental in Dublin
Short-term rental in Dublin is not widely regulated like other European States and USA. Instead, it offers only regulations about the use of land and the change of use of land.
In Dublin, Short-term letting is referred to as the renting out of a partial or entire house for a period of less than 14 days. It can be a home sharing principal private residence. The short-term rentals can be made available for 90 days only.
If the landlord is not residing in his primary private residence, he needs to get planning permission from the local authorities to operate for more than 14 days. No planning permission is required for long-term rentals in Ireland.
Is Short-Term Rental Profitable in Dublin?
According to a report by Airbtics, Airbnb enjoyed the highest occupancy rate of 80% in Ireland in 2022. This listing company pulled €34,328 from the short-term rentals with a nightly rent of €128 .
In another report published by Bloomberg, the average rates in the rental market in Dublin soared by 13.%. Moreover, AirDNA published that Airbnb and Vrbo enjoyed the average 81% occupancy rate with an average night rate of $223 and hosts earned $3064 in monthly revenue in Dublin.
All these figures and statistics reflect that Dublin is an ideal place for stating a short-term rental business. You don’t need to worry about the new regulations as they don’t remove the profitability at all. Instead, it will restrict the short-term rentals from certain actions only.
Pursuing a balanced rental market in Dublin, many laws have been devised and amended under the Residential Tenancies (Amendment) Act 2019. Under Planning and Development Act 2000 (Exempted Development) (No. 2) Regulations 2019m many supplementary regulations came into effect on 1st July 2019.
According to Dublin City Council, the following Regulations were approved under the above acts in 2019:
- The number of days for which short-term rentals are rented out were limited to only 14 days. For more than 14 days’ stays, a planning permission is not required.
- Only for 90 days, a property can be made available for letting on Airbnb.
- If a landlord wishes to let his place for more than 90 days in a year, he needs to obtain a planning permission for change of use.
- In Rent Pressured Zones (RPZs), significant regulations are going to be introduced to obtain planning permission prior to the listing of short-term rental accommodations.
- Principal private residence can be let out for a total of 90 days in a year when the landlord is temporarily unavailable from his residence. It also includes home shares in houses and apartments. For this, short-term letting is exempted from acquiring a planning permission.
- For letting out a second property where the landlord is not personally residing requires the attainment of a planning permission.
What are the Rent Pressured Zones?
In Ireland, areas where demand for houses is higher and house prices cannot go beyond the prevailing general inflation are categorised as Rent Pressured Zones. The level of general inflation is calculated by the Harmonised Index of the Consumer Price (HICP).
Finding affordable accommodations has become very difficult. As a result, these areas have been pressed for the dire need of regulating the short-term rentals to provide affordable rents for the long-term tenancy.
When Do Landlords Need Planning Permission?
Some of the reasons have been specified and explained previously. In this section, we will provide other factors when the requirement of a Change of Use Planning Permission becomes essential. Planning permission for change of land is required for the following reasons.
- Short-Term Rental in Rent Pressured Zones
Obtaining a planning permission in Dublin Short-term rentals has become a daunting task due to the strict regulations in Rent Pressured Zones. Although there’s a planning permission required for short-term rentals, the probability of obtaining one is lower in these areas of higher demand.
Planning permission is also required for the change of use of a property from commercial to residential. A landlord having a second property is also required to obtain a planning permission for using this as short-term let. If he is using this second home for short-term lets, his property is exempted from planning permission. Principal Private Residences (PPRs) are exempted from the short-term rentals unless the restricted number of days exceeds the 90 days limit. Same principle applies to home shares at Principal Private Residence (PPR).
Note: All of the latest amendments in the short-term letting regulations hold true if the property is located in Rent Pressured Zones (RPZs). Outside these zones, the legislations remain intact and will not be implemented as amended for RPZs.
The corporate lets and rent a room scheme are also exempt from obtaining a planning permission. In a different scenario where the second home of the landlord has been let out to a student for an academic calendar year, the house is vacant during summer holidays. The landlord can use it as a short-term letting by obtaining a planning permission.
Note: Medium Term Lets that last for more than 14 days are also exempted from planning permission.
When Should I register With Planning Authority?
Registering with the Planning Authority becomes compulsory when the landlord lives in his principal residence while occupying it. Secondly, when the landlord is going away for less than 90 days and wishes to list his private residence as short-term let for that period only.
Even if you have exemptions, you still need to register with the local authorities to claim these exemptions in Ireland and Dublin. For this, landlords or tenants are required to register by filing Form 15 Statutory Notification Form and Form 17 Statutory Notification at the end of each year. For more information, please refer to the official website of Dublin City Council.
Penalty For violating short-term Rental Regulations in Dublin
The new short-term rental legislative proposal approved by the government in December 2022 is supposed to alleviate the housing crunch in Rent Pressured Zones. Moreover, it will place a new registration system which will provide an overall supply of short-term rental accommodations in Ireland.
Under this proposal, the landlords will be allowed to rent out their accommodation for the extra six months when their application for planning permission is under review. For the short-term rentals of up to 12 nights, the landlords need to be registered with Failte Ireland.
Moreover, fines and Penalties will be updated for the strict enforcement of the proposed regulations in this bill. A fine of up to €5,000 will be levied by the District Court for illegal advertising of an unlisted or unregistered property. Failte Ireland is liable to charge a penalty fee of €300 for an invalid registration number. This proposal was likely to be enacted at the beginning of 2023.
Above all, this law will free up 12000 houses for long-term rentals across Ireland. However, this enactment has been delayed as the approval from the European Union is still under process. The enactment has been delayed for nine more months, as reported by the Irish Times.
Let Houst Operate Your Short-Term Rental Business
Do you want to grow your business but are stuck in the management of your short-term Rental Business? If yes, Houst is right there to assist you in the administration and management of your short-term rental business. By the efficient management of your short-term lets, we provide the most reliable and experienced property management services in Dublin.
Also, we have an innovative pricing strategy and cutting-edge tools to ensure your rental property stays competitive in the market and achieves the highest possible occupancy rate. Have a look at some of our great listing, hosting and management services in Dublin.
- Hassle-Free Rental Experience
Houst offers a smooth and convenient rental experience for both hosts and guests. As a result, the guests receive the exceptional services and they leave your place happily and satisfied. On the other hand, we ensure cleanliness and maintenance of your rental property before and after each letting. It helps to increase your rental income manifold.
- 30% more Revenue…. Houst Claims…. But how?
Houst claims that their exceptional management services in Dublin brings 30% more revenues because they dedicate a manager at each rental property of their client who is completely committed to the short-term rentals round-the-clock. The prompt response to any guest inquiry, complaints or emergency will ensure the proper management of the business. Plus, the innovative and smart solutions make the business strategy more viable and feasible for the growth of revenues and income ultimately.
- Innovation, Strategy, Sustainability
Houst operates on the principles of innovation, strategy and sustainability. This is the reason that Houst has thousands of clients across the world with millions of dollars of additional income for the clients.
- Tailored Listing and Management Services
Local rules greatly impact the short-term property rentals in every country across the globe. Houst offers the most customised and efficient listing and management services that are compatible with the local regulation on short-term letting and use of planning permissions.
- Professional Advice on Holiday Rentals
Houst offers the best and optimum advice for exploring the best options for your holiday rentals in Dublin. We weigh the pros and cons of each strategy with the help of experts and provide the best insurance plan, hosting plan and management plan for each of our clients. With the help of the latest and cutting-edge technology, we make these options aligned with the latest market trends to get the competitive solutions for your short-term rental business.
Curious to see how much you could earn on Airbnb? Schedule a free, no-strings-attached consultation with our Airbnb Management Dublin team to uncover your property’s revenue potential.
The Bottom Line
Finally, we conclude the discussion by saying that the short-term lets in Dublin are going through the most desirable yet controversial short-term letting bills for eliminating the house crunch in Rent Pressured Zones (RPZs). These proposals have been approved by the Irish government. However, approval from the European Union remains to be finalised. So, if you are not living in an area of high house demand where rents are shooting up, then you don’t need to be worried about these regulations.
The article has discussed in length how Houst can help you in letting and managing your business because you want to grow your business and don’t want to feel stuck in the nitty gritty yet most significant management services. If you’re looking for such a reliable and committed let management company in Dublin, Houst is the best option for you. Reach out to us today.